Former Upstate councilman arrested

Ron Wilson charged with mail fraud

Former Anderson County Councilman Ron Wilson has been charged with mail fraud, United States Attorney Bill Nettles announced Wednesday.

Nettles said Wilson, 64, of Easley, faces a maximum penalty of 20 years imprisonment and a $250,000 fine if convicted.

Wilson turned himself in to U.S .Marshals at the federal courthouse in Greenville.

Wilson made his initial appearance before United States Magistrate Judge Jacquelyn D. Austin. His secured bond was set at $1 million. By late Wednesday afternoon, he had satisfied his bond and was released. According to the U.S. attorney's office, Wilson’s wife, Cassie, used a property in Easley and two properties in Woodruff to secure Wilson’s bond.

Wilson is accused of scamming people who thought they were investing in silver.

Attorney General Alan Wilson had filed a complaint against Wilson and Atlantic Bullion & Coin, Inc., saying that, despite a previous cease and desist order, Wilson and AB&C continued to offer fake investment opportunities to people in South Carolina and 24 other states.

As attorney general, Wilson serves as the South Carolina Securities Commissioner.

According to the complaint, Wilson met with representatives of the Securities Division in February and testified under oath that he and AB&C’s business bought bars of silver that he would either deliver to clients or that clients would pick up. The complaint says that there is no evidence to back up Wilson’s claims.

The attorney general alleged that Wilson had actually been running a Ponzi scheme in which earlier investors were being paid with the money from new investors, and no silver was ever purchased.

In all, Wilson is accused of defrauding investors in 25 states of more than $70 million.

Former official says Wilson admitted to Ponzi scheme

U.S. Secret Service agents said they interviewed former Anderson County Administrator Joey Preston on March 26. The affidavit said Preston was an investor with Wilson and recruited people to invest in Wilson’s company. Preston told agents that during the prior week “he had a conversation with Wilson wherein Wilson stated that the Silver Investment Accounts were operated as a Ponzi scheme and that there were insufficient silver holdings to repay investors.”

Former AB&C employees were also interviewed by the U.S. Secret Service during the investigation, including Stephanie Robins, the company’s administrative assistant. The affidavit said Robins stated that she never saw any physical silver for the silver investment accounts and had never seen any paperwork or mail from a Delaware Depository, where investors’ silver was supposedly being held.

Former AB&C vice president Jena Eison told agents Wilson handled all aspects of the buying and selling of the silver for investors and that she didn’t see any paperwork from the Delaware Depository either.

The affidavit said Eison asked Wilson about the location of the silver and inquired if she could go see the silver “to reassure her and a few clients that had inquired about the existence of the silver.” The affidavit said Wilson responded by saying that “the silver was stored in Delaware, someplace where (Eison) would not be allowed to enter.”

When Eison asked to see receipts and holding statements from the depository, the affidavit said that Eison told agents, “Wilson would merely dismiss her concerns.”

In the affidavit, Tom Griffin, resident agent in charge of the investigation, said records he reviewed: “Show the monies received from investors (was) being used for Wilson’s and his family’s personal business interests. The documents do not reveal transactions where Wilson or AB&C were purchasing precious metals in any amount commensurate with the investor dollars received.”

Wilson was elected in 2007 to represent Anderson County Council District 6. He decided not to seek re-election last year and was replaced by Ken Waters in January 2011.

Wilson was also the former national commander of the Sons of Confederate Veterans and served from 2002 to 2004. He ran unsuccessfully for a seat in the South Carolina Senate in 2004.

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